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Investing.com — XL Fleet Corp (NYSE:XL) jumped 15%, to $5.35 in early Tuesday trading after it told investors it has been awarded a contract by the Defense Innovation Unit and the U.S. Army’s Project Manager Transportation Systems to produce a prototype fuel-saving technology for military vehicles.
XL Fleet became one of two companies awarded the contract to develop a pilot technology project over the next 12 months after it began at the start of October.
“We are honored by the opportunity to compete for this highly selective U.S. Government contract to develop fuel-saving solutions for a wide range of applications for tactical military vehicles,” said Tod Hynes, founder and president of XL Fleet.
If the vehicle electrification solutions firm is successful, the technology could be applied to tens of thousands of existing military vehicles across an extensive range of applications.
The contract is part of the Defense Department’s efforts to implement fuel-saving across its fleet of over a quarter-million military tactical vehicles.
“We can help extend the operational range of their tactical vehicles, while supporting our troops’ safety and providing significant fuel and operating cost savings and reducing greenhouse gas emissions,” Hynes said.
